THE top executive of Davao Region's highly-diversified group of homegrown companies said the P19 billion Sasa port modernization project is being bedeviled by at least 10 issues, causing a lot of controversies that would eventually affect all Dabawenyos.
Anthony Alexander N. Valoria, president of Anflo Management and Investment Corp., which manages 23 companies, called the Sasa port project the first Public Private Partnership (PPP) project that is designed to compete with the private sector.
Valoria made the comment in a speech before the Rotary Club of East Davao during its weekly luncheon meeting attended by mostly captains of industry, business executives and top professionals.
He identified the 10 issues as follows:
1. There is the complete absence of any consultation with Davao business groups, consumer groups, concerned citizens and even the Davao City Council. This is another case of Imperial Manila dictating to us in Davao what we need without them even asking us what we actually need.
2. The project cost ballooned from P4 Billion to P19 Billion based on absurd projections on the container trade such as 20% increases in export volume from one year to the next.
3. In comparison, DICT (Davao International Container Terminal –one of the Anflocor firms) will have invested only P4.5 billion by June of this year and will have a similar capacity of Sasa Port under their PPP in 2020 after spending P19 Billion. Where is the difference going?
4. And who will now pay for all this? You all are going to pay for this. This PPP project provides for an 80% increase in port services rates in Sasa in 3 years and further increases every 3 years thereafter.
5. The PPP project for Sasa does not provide for break bulk cargo handling which is very important for Davao City business. In 2014, Sasa handled 500,000 MT of steel, wheat, fertilizer, motor vehicles, heavy equipment and other cargo that are not suitable for container shipping.
6. The requirements for qualified bidders under this PPP project discriminate against all of us here in this room. While we may have the ability and talent to operate such a port, not a single one of us from Davao will be able to meet their qualifications. Only the very largest companies in Manila partnered with large foreign companies are able to meet DOTC’s qualifications for this pet project of theirs.
7. This is the only PPP project that is designed to compete with the private sector.
8. The PPP project failed to consider the huge traffic congestion this will cause in the northern part of our city that is already very congested.
9. The five pre-conditions required by the Davao Regional Development Council have not even begun to be complied with.
10. The PPP project has no provision for a Tourism port.
Valoria said that "in reality, there is no need for such a PPP project, adding that currently, “the shipping requirements of Davao are already adequately handled by the existing ports, so why all this rush for the PPP for Sasa port?"
Valoria however clarified his group is not against the modernization of Sasa port.
"All we are asking the DOTC (Department of Transportation and Communication) is not to rush into this and to listen/consult with Davao stakeholders as to what Davao really and truly needs in Sasa. We must not allow Imperial Manila to force down our throats something that we do not need here in Davao, something we will even end up paying for," he said. (Sun.Star Davao)